Will Manpower (MAN) Disappoint This Earnings Season? - Analyst Blog

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ManpowerGroup Inc . ( MAN ), a global leader in employment services industry, is set to report its fourth quarter and full-year 2013 results on Jan 30, 2014. Last quarter, it posted a positive surprise of 15.6%. Let us see how things are developing for this announcement.

Growth Factors in the Past Quarter

Manpower's third-quarter 2013 results were impressive, owing to improving economic trends in Europe, along with effective cost management. Moreover, the company's restructuring initiatives are facilitating higher savings and in turn improved bottom-line performance.

Earnings Whispers

Our proven model does not conclusively project Manpower as likely to beat earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for this to happen. This is not the case here as you will see below.

Zacks ESP:  ESP for Manpower is 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate stand at $1.26.

Zacks #3 Rank (Hold): Manpower's Zacks Rank #3 (Hold) lowers the predictive power of ESP because this Zacks Rank when combined with a 0.00% ESP makes surprise prediction difficult. We caution against stocks with a Zacks Rank #4 and #5 (Sell-rated stocks) going into an earnings announcement, especially when the company is witnessing negative estimate revisions momentum.

Other Stocks to Consider

Here are some other companies you may want to consider as our model shows these to have the right combination of elements to post an earnings beat:  

Michael Kors Holdings Ltd. ( KORS ) with an Earnings ESP of 1.15% and a Zacks Rank #2 (Buy).

Under Armour, Inc. ( UA ) with an Earnings ESP of 3.77% and a Zacks Rank #2 (Buy).

The Walt Disney Co. ( DIS ) with an Earnings ESP of 3.33% and a Zacks Rank #3 (Hold).



DISNEY WALT (DIS): Free Stock Analysis Report

MICHAEL KORS (KORS): Free Stock Analysis Report

MANPOWER INC WI (MAN): Free Stock Analysis Report

UNDER ARMOUR-A (UA): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Earnings , Stocks

Referenced Stocks: DIS , KORS , MAN , UA

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